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SpkNetwork SIP: Answer To Funding

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Things are changing very quickly. We are seeing infrastructure starting to develop that will put in place the ability to radically alter how we do things. One area this is changing is in the area of funding.

Yesterday I wrote how cryptocurrency was used to raise money for research. This is all part of the evolution for the industry to go through.

As we start piecing things together, we can see how new models are emerging. This is evident when we look at what the SpkNetwork is constructing and how it will change the path of funding. The SIP is truly revolutionary in this matter.

SIP As A Funding Mechanism

The Service Infrastructure Pool (SIP) is a feature that is going to be part of the SpkNetwork. It is the primary DeFi which is part of the foundation of the network.

At the base level, we have 4 tokens:

  • Miner (LARYNX)
  • Governance (SPEAK)
  • Gas (BROCA)
  • Pair (HIVE)

The SIP is designed to be a long term liquidity pool that not only allows participants of the network to operate but also provide an ever growing revenue stream which we will also cover in a moment.

To find out the details of the SIP, check out the Light Paper. For our purposes here, we just need to know the SIP is a mechanism that collects HIVE from the purchase of miners and advertising. This is locked away, providing liquidity for the other tokens, increasing the attractiveness for the pool.

Here we see the potential for transaction fees to expand as the network gets more active. Since the HIVE that enters is locked away, the LP keeps growing. Typically, the greater liquidity results in more people using the pool. It results in a circular system because this enlarges the fees that the SIP generates.

Fees can be funding mechanisms.

LongNetwork

In the article linked, it was discussed how there was a fundraiser for SENS Research, a non-profit that focuses upon longevity research. Here we will create the LongNetwork to illustrate our point.

Part of the SpkNetwork's fundamental premise is to create breakaway communities. Here is what the Light Paper stated:

Breakaway Communities are content creators and their communities that set up on the Hive blockchain and SPK Network and benefit from the direct account ownership properties, DeFi capabilities, tokenisation, NFTs, storage and censorship resistance properties of this technology, outside of the influence of the mainstream Web 2.0 system.

Independent and self-hosting content creator websites will be able to utilise the Network to create their own immutable Breakaway Communities, direct account ownership, community token economies, NFTs and also distributed storage of their content.

In this instance, the Longevity supporters are considered a community.

It will be able to easily create a token; the AGE. This will be used as the foundation for all activity on the SpkNetwork for this community. Anyone within it will be able to utilize the services that allow for the hosting of content pertaining to the field. Individual videos and articles, as well as research, all are a part of it. This will be eligible for rewards like any other Proof-of-Brain community.

This is a great way for users to enjoy the financial benefits of Web 3.0. However, this is just the beginning. What we are truly looking at is a brand new funding mechanism for the community. In this instance, it could be for Longevity Research.

Here we harken back to the SIP, not in its form but as a concept. There is another gem in the Light Paper worth mentioning.

As the project progresses, the vision is that all Breakaway Communities (see section 8) will be backed by their own SIP's, all tying into an integrated, optimised multi SIP infrastructure ecosystem.

The SIP is to be replicated.

Above we listed the four tokens. For LongSpeak we can change it up a little.

  • Miner (LONG)
  • Governance (AGE)
  • Gas (BROCA)
  • Pair (HIVE)

Now it is simply duplication time. The SIP is filled through the purchase of miners (LONG) and advertising. This allows for the liquidity of the pool to generate revenues. HIVE goes into this pool, is locked in, and used for swapping of the AGE token. BROCA obviously is core to the operation of the network and each user will need some.

By replicating what is done with the main SIP, the LongSpeak community is able to, over time, grow the revenue stream that results from the actions of the community members. We can see as the community enlarges, the amount of money generated will increase. Here is the built-in funding capabilities that that are desired.

HIVE As The Pair

Something else should be noticed. HIVE is listed in both the "Governance" SIP as well as the LONG one.

This is the pair for each token on the network. All miners and advertising is going to be paid in HIVE. This provides a tremendous sink.

If this concept spreads out, HIVE will be the pair for the tokens in an untold number communities. The Longevity field might not be the biggest, yet this concept could apply to anything. Let us do the same thing for cancer research, as an example.

The key is that we see a sink for HIVE that can keep growing by orders of magnitudes. Not only will the original SIP keep eating up HIVE with each additional purchase but every community SIP. Each transaction into a SIP locks more HIVE away, within an expanding number of liquidity pools.

Since this is being established as a decentralized system, the protocol is available to anyone. So as to not maintain control, each community is on its how. The constant, however, are BROCA which is needed for gas and HIVE for the pair.

This is how the one can span the entire network. Any community can be engaged with at all levels as long as one has some HIVE and BROCA.

The development of this is truly revolutionary for both Hive and communities around the world. Social Tokens are starting to get some publicity and the SpkNetwork is working on providing the infrastructure that is required. From what was stated, the goal is to make this easy and inexpensive to set up.

By removing the cost of token creation as well as the technical challenges, the SpkNetwork will truly revolutionize the tokenization of communities. Ultimately, this provides a mechanism through which the existing passion of a community can be leverage for financial gain. As we can see, the community can decide to use the gains for the ongoing funding of whatever it desires.

In the case of the LongNetwork, this could be for ongoing research.

With infrastructure comes solution. Hopefully we can now see how a new funding mechanism is on its way. This will allow for a transformation of all research communities.

Cryptocurrency is going to make a huge difference.

Image taken from Light Paper linked in article

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